Developers Likely To Take Mount Dora Offer For Property

MOUNT DORA — Mount Dora's offer to buy vacant downtown property originally planned for a residential development probably will be approved, the development's manager said Thursday.

City officials have offered $10,000 as an option to buy land on Fifth Avenue owned by Fidelity Services Inc. of Fort Lauderdale and Montague Mortgage Inc. of Mount Dora. Mount Dora officials, who are considering building a parking lot on the land, said they are investigating options to pay for the land.

The property was purchased by the developers in November 1983 and designed for an upper class housing development called Constitution Square. The developers demolished an old building on the site, built a two-story model home and erected a large mural of Colonial-style houses fronting the property on Fifth Avenue and McDonald Street.

Montgomery Montague, president of the mortgage company and development manager, said the project called for 14 two- and three-story homes ranging from $190,000 to $210,000 each. The developers wanted to sell at least 10 units by March.

Only a handful of people placed an option to buy a unit. Fidelity Services, which is the majority investor, put the property up for sale last month.

Montague said he did not know why the development was unsuccessful but contributing factors could be the price, location on the road and the amount of space in a unit.

In March, Montague presented a plan to City Manager Tony Segreto that would allow the city to buy more than half of the property for $175,000.

The developers also are asking $350,000 for three commercially zoned lots fronting Fifth Avenue, Montague said. Land behind the roadfront property and a small triangular-shaped parking lot across McDonald Street are being offered to the city, he said.

Segreto said the city would be wise to buy the property overlooking Lake Dora because its value will continue to increase. Under one plan being discussed, the city would landscape the property, place walkways and benches on the area and pave spaces for about 40 cars, he said.

Other possible uses for the property include a ground floor parking lot and second-floor office building or a park.

If the city's $10,000 offer to hold the land is accepted, it would have 90 days to arrange financing and close the deal. Segreto is discussing a financing package with area lending institutions.

Montague, Segreto and city attorney Harlow Middleton are scheduled to meet next Thursday to discuss the option to buy.

Many downtown merchants are behind the city council's decision to consider buying the land for a parking lot. Al Rehbaum III, a member of the merchants association, has offered to help find financing at cost for the project.

The city does not have a serious parking problem, but future downtown growth could hinge on convenient parking for customers, city officials and merchants said. The city has been considering several plans to increase downtown parking but none have been implemented.